Question

A jar is filled with 74 different colored marbles, 10 of which are red, 38 of which are blue, and 26 of which are green. A player is asked to draw a single marble from the jar and if they draw a red marble they will win $20, if they draw a blue marble they will lose $10, and if they draw a green marble they will lose $5. You may round your answer to the nearest cent

Answer 1

Solution :

Colored marble            Prize

     Red ----  10               20

    Blue --- 38                 10

   Green --- 26               5

P(red)  =  10/74  =  5/37

P(blue)  =  38/74  =  19/37

P( green)  = 26/74  =  13/37

Therefore,

 X      →     Red          Blue      Green

P(X)           5/37        19/37      13/37

The expected values are :

$20 \times \frac{5}{37} - 10 \times \frac{19}{37} - 5 \times \frac{13}{37}$

= -4.189

Thus it is not profitable to play the game.